This is posturing by a number of parties ahead of the 4th CCP Plenum which starts on Oct 20th.
Xi is currently engaged in an internal fight for his life against a rival faction led by the head of the Army. He had been planning to drum up enough support to be declared Regent for Life aka "Great Leader". This seems unlikely as the opposing faction is outmaneuvering him. He went to ex Premier Hu Xintao last week seeking support and was told very publicly to Fuck Off with a detailed list of why.
The Yop General is further maneuvering to make Xi seem weak and pathetic. It's unclear if the global trade demands are from Xi trying to seem weak or the Generals faction trying to trigger a Trump reaction?
Either way it has caused Trump to tell Xi to Fuck Off and trigger a death spiral for Chinese manufacturing. And further to cancel the big meeting with Xi next week.
Xi's not looking very strong.
None of this is a good thing as should General Sum Dum Fuk take over he will likely attack Taiwan. He's been the one pushing the envelope. Rumor is he attempted to invade back in 2023 under the guise of a War Game. Xi pulled the rug out from them. Xi had been rolling up the Generals friends for corruption. But now Xi's Generals are getting popped.
Odds are Nothing Ever Happens and this will all blow over by November. But there is a possibility of things taking a nasty turn. Ask yourself. Why did Trump really assemble all the Flag Officers last week? What were the Non-Public meetings about? Indications are it was "prepare to fight".